A confidential report commissioned by the Welsh Government to examine the case for university collaboration in South-East Wales concluded that university mergers were “unrealistic”, we can reveal.

A confidential report commissioned by the Welsh Government to examine the case for university collaboration in South-East Wales concluded that university mergers were “unrealistic”, we can reveal.

A Strategic Collaboration Board for South-East Wales cited a number of differences preventing Uwic, Newport and Glamorgan universities from entering in to “full-scale merger”.

Documents leaked to the Western Mail and made public today for the first time, also reveal the human and financial costs of failed merger talks between the institutions.

The development comes as current Education Minister Leighton Andrews prepares to reengage Glamorgan, Newport and Cardiff Metropolitan universities (formerly Uwic) in merger discussion.

In his report, published in 2008, board chairman Sir Deian Hopkin said a decade of discussions had been “destabilising and demoralising” and “there was no urgency to seek further major institutional changes”.

Former education minister Jane Hutt commissioned the study in response to the Bull and Cooke Report, which alluded to a “spiral of decline” in the region’s higher education provision.

Sir Deian, former vice-chancellor of London South Bank University, said the 2005 report presented a “compelling argument” for the reconfiguration of three of the four universities in the South-East Wales area.

“It was established at the outset, however, that two of the three governing bodies did not recognise the ‘spiral of decline’ in the context of their own institutions,” he wrote.

“The three higher education institutions (HEIs) involved have engaged in extensive merger discussions on several occasions in the recent past and because they were unsuccessful they constituted a major drain on the senior management resources in all institutions.

“Substantial opportunity costs have distracted many staff in the HEIs away from the core business. Members felt that all the energy and resources devoted to this activity could have been channelled more productively.

“The Strategic Collaboration Board for South-East Wales concluded that in the light of the differences between institutions in terms of their visions, missions and strategic directions – and in light of the lessons learnt from mergers and the lack of agreement on the strength of the business case; it was agreed that full-scale merger between two or all three HEIs was unrealistic at this time.”

Sir Deian said each of the universities, represented on the board by their vice-chancellors, felt that “continuing doubt” had impacted on recruitment and retention of staff and students.

The Welsh Government is committed to reducing the number of higher education institutions in Wales and Mr Andrews believes controversial plans to unify the universities will go ahead despite growing opposition in the capital.

Cardiff Met is the only institution to publicly oppose the plan and has warned it could take legal action if the minister uses his powers of dissolution to force through formal collaboration.

In his report, Sir Deian said the universities’ vice-chancellors were interested in exploring shared services and collaborating on specific projects, perhaps with other partners.

At least one board member felt that Cardiff University and the Open University in Wales could have been invited to participate.

“The board identified that the advantages of working collaboratively will differ accordingly to the area of activity,” said Sir Deian.

“They concluded that any collaboration must have a compelling business case and fit with the individual HEI vision.”

Sir Deian said there was a “good relationship” between the university vice-chancellors, who shared their views openly, honestly and constructively.

Concluding, he said that “at some stage in the future” careful consideration would again be required as to the structure of higher education in South-East Wales.

A spokesman for the University of Wales, Newport last night said a “speedy resolution” was needed to end the uncertainty surrounding the institutions involved.

“The Hopkin Report rightly identifies the negative impact of previous, abortive merger discussions on the operations of the universities involved and Welsh higher education more generally,” he said.

“In response to the current reconfiguration discussions, Newport has made the case that this can only be overcome by the creation of a new, not merged institution in South-East Wales which protects and builds on the existing good work of all three institutions.”

The University of Glamorgan said it would continue to engage positively with the merger consultation.

“We will naturally be careful to protect Glamorgan’s position, but we see the long-term potential for South-East Wales of a single, modern university of a size and scale to compete with its major competitors over the border,” said a spokeswoman.

Cardiff Met said it would be inappropriate to comment on a confidential report while the Welsh Government said the situation facing UK higher education was “very different” in 2008.

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